Investing in energy efficiency: if not now when?

Today, the pressing question everyone is asking is: how can we make it through the next winter and how can we reduce quickly energy prices? But the real question should be: how can we make it through the next four-five winters and burning summers, and at the same time accelerate carbon emissions reduction.

Monica Frassoni is the President of the European Alliance to Save Energy (EU-ASE).

More than two hundred days have passed since Russia launched a full-scale invasion of Ukraine, starting a tragic conflict in Europe with no clear end in sight. The use of energy as a weapon by Vladimir Putin shows that by delaying plans for a clean energy transition the EU is more vulnerable and insecure.

While emergency plans are underway to respond to the crisis, skyrocketing prices of wholesale fossil gas and electricity pose a real challenge  to struggling citizens and businesses and put at great risk the post-pandemic recovery. 

Today, the pressing question everyone is asking is: how can we make it through the next winter and how can we reduce quickly energy prices? But the real question should be: how can we make it through the next four-five winters and burning summers, and at the same time accelerate carbon emissions reduction.

Because the cheapest and cleanest energy is the one we do not need, rapidly increasing energy savings is of outmost importance. By mainly focusing on diversification of gas supply many governments are underestimating the massive savings potential that is currently untapped at end-use and system levels via retrofitting, demand-side flexibility and by accelerating the digital transition.

The International Energy Agency’s Net Zero by 2050 report shows that globally we need to push the average rate of energy efficiency improvements in the period 2020-2030 to about three times the average of the last two decades to achieve climate neutrality by 2050. The IEA explains that this can be done through massively scaling up energy-efficient solutions for buildings, vehicles, home appliances and industry, all solutions available today.

Our catalogue of short to mid-term efficiency solutions confirms that energy savings can be rapidly scaled up in a cost-effective manner. These are also socially-just investments, since often it is vulnerable people that are most affected by higher energy prices. Every euro that goes into improving energy efficiency does not need to be spent on increasing energy production capacities and transmission infrastructure, with lower costs for member states and taxpayers

To turn this vision into a reality and ensure Europe is on the right path, everybody must play their part: policymakers, businesses and citizens. 

The EU legislative framework is key in this respect. The European Parliament has recently adopted a strong position on the ongoing revision of the Energy Efficiency Directive (EED). Sadly this is not the case of the common position of the Council. Negotiations between the two co-legislators are likely to be difficult and some of the most important innovations brought by the Commission and the EP are at risk. The introduction of minimum energy performance standards in the revision of the Energy Performance of Buildings Directive (EPBD) is for example a key opportunity for the EU to show the way and modernise its old and inefficient building stock.

As European Alliance to Save Energy (EU-ASE), for more than 10 years we have been joining forces  with progressive businesses and civil society organisations to work together towards a more energy efficient Europe.

This October we are hosting the first edition of the European Energy Efficiency Day, a high-level policy conference to discuss the present and future of energy in our continent, through the lenses of energy efficiency, innovation and long-term sustainability.

The event will bring together leading policymakers and business players, civil society organisations and energy experts. Our aim is to give more visibility and focus to energy savings solutions and discuss their implementation in the framework of the Green Deal.

Today Europe faces the urgent challenge to achieve very quickly energy independence and accelerate the transition to a climate-neutral, efficient economy. We must find the resources and set the rules to help the EU move away from fossil fuel dependency and accelerate investments in energy efficiency, and renewables. It is the only way to go, if we are not to waste other precious years with unsustainable and ineffective solutions. If not now, when?

To continue this conversation I hope you can join us on 13 October and help us draw the future of energy and of Europe.